Member Info for Gallmat

Last comment.

Wft are you wasting money increasing reserves when you have non working capital to get ebita positive and raise debt.

For f::: sake!.

Do you think telling people you are spending cash on irrelevant thinga is good. The comment at end says basically, the good news is going forward we will not be spending cash on this.

Why did you not keep cash in reserve so you could sell your output!

The difference here is other companies can attract capital. Before building the mine they went out an professionally obtained offtakers. Clear relationships, with commitments for product with cash upfront.

For some reason tgr cannot get anyone to lend them money. For whatever reason this is, the company is in a bad place.

If you cannot ramp up, you cannot make money and you bleed cash. Alternatively the city let it drift and then offer you money with massive dilution.

The last 2 rns, feel like last ditched boosting attempts. Sadly they are focused on things no investor has interest in.

Why can't tgr make money, why did they not get the convertible done.

Https://timesofindia.indiatimes.com/city/jaipur/now-meena-alleges-a-scam-in-e-auctions-of-mines-in-5-years/articleshow/101177226.cms

The more you read the less you expect a settlement. But nice that corruption is openly an issue.

Https://www.thehindu.com/elections/rajasthan-assembly/rampant-corruption-in-rajasthan-creating-huge-losses-for-the-nation-pm/article67551539.ece

Sheer class.

Maybe you are right. Sacrafice some upside on the case and have some assets to protect us on the downside. I will think about it.

Many thanks for comments

I think boards shareholding also cannot be judged as we progress there will be share options etc.

Hoping for best and planning for the worst.

They did it but still suboptimal.

Raising 4m gbp to dilute 15pct on 600m gbp.

Is that 4m worth 90m.

2 approaches.

Invest 4m now. Maybe turns into 16.

Sell assets now. Spend extra 90m gbp at end to buy advanced asset.

The sensible approach is clear it is about management alignment.

Close up shop. Put it on maintaince and for all i care they go work in other companies for 4 yrs.

I think it has value, but have worry about dilution.

If we win the case, we become a cash shell. We could choose lots of farm in opportunities at that time.

The company should be split into 2 entities.

1. With litigation

2. Other with mining.

We have sharea in both, they can then fund 1 properly without diluting 2

In my opinion just a bit of a distraction and possible dilution.

If we win and have capital you will easily be able to farm in to a good opportunity.

Final thought for day.

Worst thing for junior miners is getting cash (the dilution). If we settle or get an award. You have a mining company that is a cash shell.

Surely they will be in a good position to pick a good project to partner on. With say 300m gbp in cash they might find opportunities to make even 50m a year on a sustainable basis. Or 4x our market cap now per year

I think people underestimate how nice this trade is vs others.

Painful now while we wait for damages amount.

But after that we do not need to worry about:Sales figures, politics, interest rates, competition.

Just that our case does not get thrown out. We dont even need to worry if we win. If we make it to a final hearing we will be multiples higher

It's just now about what they can get away with.

Sad thing is if we had the project. With a very low amount you could prove we are on a 10 to 20mt deposit. So our claim might be limited to 6.7mt and some guessing blue sky.

Master stroke by indian gov

I doubt we will get the full post tax npv.

Maybe the market cap of similar companies with similar deposits.

The NPV assumes certain prices, excludes operational issues. It will be smaller than this. Degray is 1.5bn mkt cap. Their npv is probably 5bn?

They key here is. Will the sale cost be taken as valuation of potential damages.

If there is a risk the gov can sell for 500m, but we claim 1.2bn. Then it becomes a pressure situation for the gov.

Is the 500m is taken as all we are entitled to get then they have no risk.

This is rhe key point i think

This has to be the most bizzare situation.

Someone is going to sue you for stealing an asset.

But you are going out and telling everyone how valuable it is !.

On equity raise, if another 2m gbp was available you should take it. This is what i see here a small company talking huge, but still with a small mindset. They are thinking about protecting what they have, rather than what they can achieve. This family style of running a business ( as shown in the staffing) is just not right for listed companies.

I cannot believe that a company put an rns out about the demand outlook for a commodity.

Do you see bp releasing an rns about oil!.

We know about graphite, the issue is they cannot find a way to finance getting it out of the ground.

Rather than finding someone with financing transactions or a strategic fit, you just promote your family!

Yup. That is the logical move.

Taking those new assets ate up all the cash. Ceo never thought about cashflow or contingencies.

Sell it on and make something. But can he take the hit?